The overarching objective of the Code is to improve the insurance in superannuation offered to you and the processes by which insurance benefits are provided, ensuring automatic insurance in superannuation "is appropriate and affordable" and does not inappropriately erode future retirement income. The Code provides a range of initiatives that are beneficial to all members, including enhancing our claims service, improving member engagement, education and awareness of insurance, and improving the member experience.
Sunsuper became compliant with the Insurance in Superannuation Voluntary Code of Practice on 1 July 2018 for its public offer product, Sunsuper for life, which encompasses the vast majority of our members.
We are compliant across most aspects of the Code for our remaining products and have been working towards full compliance across all products for 1 July 2019.
For our Corporate and Business products we are compliant with the Code from 1 July 2019 aside from a small number of Sunsuper for life Corporate and Business plans due to the specialised nature of these plans.
For our Sunsuper for life for former Kinetic Super members, we became compliant with the code from 1 March 2019.
Sunsuper's compliance with the Insurance in Superannuation Voluntary Code of Practice
|Key Code Requirements||Sunsuper for life*||Sunsuper for life Business||Sunsuper for life Corporate|
|Benefit Design/Membership Segmentation||✔||**Full compliance planned from 2019/20||**Full compliance planned from 2019/20|
|Erosion Measures||✔||**Full compliance planned from 2019/20||**Full compliance planned from 2019/20|
|Communications||✔||✔||***Full compliance planned from July 2019|
|Intention and Comprehension Statements||✔||✔||✔|
|Supporting Vulnerable Consumers||✔||✔||✔|
** Sunsuper for life Business/Corporate: Sunsuper provides a flexible range of insurance solutions to employers through our Sunsuper for life Business and Sunsuper for life Corporate plans. Due to the specialised nature of these plans a small number are not compliant with some elements of the Code which relate to affordability and in particular the 1% premium cap from 1 July 2018. Sunsuper will continue to work with those employers with benefits tailored to the specific needs of their employees and ensure plans meet the 1% premium cap where possible..
*** Sunsuper for life Business/Corporate: In adherence with the Code, Sunsuper has implemented a series of insurance communications to update members at key stages in relation to insurance, specifically when it may cease due to contribution inactivity. These communications are provided to all Sunsuper for life Super-savings, Business and Corporate members. However, some of the elements in the annual insurance communication will not be available for Sunsuper for life Business and Corporate members until the Annual Statement cycle for 2018/19 financial year.
Annual Code Compliance Report
Sunsuper adopted the Code from 1 July 2018 and in an industry first also adopted compliance with the Code for our 1 million Sunsuper for life product members from the Code’s commencement on 1 July 2018, three years ahead of the transition time frame.
As a part of adopting the Code, Sunsuper has published an Annual Code Compliance Report.
Sunsuper’s report shows results for the full 2018/2019 financial year.
Sunsuper’s Insurance Strategy
Our Insurance Strategy includes the Insurance Objectives / Principles as outlined below.
The following insurance objectives/principles have been adopted in developing the insurance strategy ensuring that the premium structure and levels are sustainable, taking into account the impact premiums have on members’ retirement benefits.
- 1. Product and services
- • are designed in our collective members’ best interests,
- • are appropriate and affordable for our membership,
- • take into account the views / feedback of members,
- • contain innovation which is valued by a significant portion of our member base and delivered cost effectively,
- • are continually reviewed and updated, and
- • are viewed as being above the industry benchmark (e.g. top quartile for features / functionality and premiums (voluntary cover – at occupational category level, default cover – Funds with a similar occupational profile)) over the solution life cycle,
- 2. Premium cross subsidies are limited across ages and gender as far as is practicable,
- 3. Transition between products should occur easily and without diminished benefits,
- 4. Members are able to easily tailor their insurance cover (pricing, features, service) to meet their specific needs, and
- 5. Member communication and service capabilities are efficient, understandable and respectful to members and their beneficiaries.
Refund of premiums to the Trustee
As part of Sunsuper’s arrangements with AIA Australia to provide insurance to Fund members, the Trustee may receive a refund of premiums, depending on the level of claims against the insurance policies. The Trustee will pass on any refunded premiums through adjustments to future premiums, or will use refunded premiums to assist with insurance administration costs. Any refunded premiums which are received and not yet used for these purposes are allocated to an insurance reserve.